The objective of the deal, inked today between the Sarawak Economic Development Corporation (SEDC) with Sarawak Shell Bhd and PTTEP HK Offshore Limited apart from the national oil corporation, is to unlock potential from untapped sour gas resources off the coast of Sarawak.

Under the terms of the agreement is a long-term lease for land within the Petchem Industrial Park in Tanjung Kidurong, Bintulu, for Petronas to build an onshore plant that will form part of the Sarawak Integrated Sour Gas Evacuation System (SISGES).

Both the property and the industrial park are owned by the SEDC. Petchem was created in 2020 to attract participation from domestic and international investors to grow Sarawak’s downstream oil and gas activities.

In a statement issued today, Petronas said the development plan for the SISGES project is currently being reviewed for final statutory approvals to facilitate the investment decisions.

It expressed hope that the deal would spur investment and create a stable and conducive business environment for sustainable growth in the O&G sector in Sarawak.

On another note, Petronas has recently been voted the world’s strongest O&G brand for the third year in a row, according to Brand Finance’s 2022 annual report on the most valuable and strongest O&G brands.

The company also remains among the 10 most valuable O&G brands globally in 2022.

Petronas’ high ranking has been attributed to the result of its Brand Strength Index (BSI) which increased from 87 last year to 87.7 in 2022. BSI is a rating on a brand’s performance, focusing on intangible measures relative to its competitors.